In this new edition of his classic text, Laurence Seidman refocuses on important economic issues the United States faces in the twenty-first century. Writing in a conversational style, he introduces professor-requested supply-and-demand and production possibility-frontier diagrams to illustrate the updated micro- and macroeconomic topics. Using parables to present economic lessons, this third edition includes sections on combating recessions and the free market, as well as updated material on new individual accounts under Social Security. New to this edition are discussions of the tax credit approach to encourage the purchase of health insurance and the latest changes in the earned income tax credit. Revised to facilitate the needs of teaching introductory economics, each chapter advocates a specific economic policy to illustrate the particular issue under discussion, and to provide an opportunity for debate and discussion. Topics covered include taxation, social security, international trade, the environment, health care, education, investment, and other issues.